Pension millionaires givenmore time to slip tax net

The Revenue says legislation allowed it to accept applications after June 7 deadline, but would not confirm how many late requests had been approved

T
he Revenue has quietly extended a June deadline so more taxpayers, including politicians and top civil servants, can keep multi-million-euro pensions out of the tax net when they retire.

Last December’s budget reduced a cap on pensions from €5.4m to €2.3m. Those whose funds exceeded the new limit on December 7, 2010, were given six months to apply for a personal fund threshold (PFT), allowing them hold on to funds over €2.3m tax-free.

The Revenue said the legislation gave it discretion to accept applications after the June 7 deadline. It confirmed it had allowed late requests, but declined to say how many.

“A late application would be accepted if there were sufficient grounds,” it said.

Just 1,200 PFT applications were received by the June 7 deadline. Pension experts said the figure was surprisingly low given the high number of public servants entitled to six-figure pensions. The Revenue has issued 560